'SPY' Eclipses $250B
The world's largest ETF hit a new milestone as investors added $15 billion to ETFs overall during the week.
Growing euphoria in the stock market pushed the S&P 500 to multiple record highs this week. Likewise, inflows into U.S.-listed exchange-traded funds continued to reach heights never before seen.
SPY easily took the top spot on this week's top inflows list. Its latest inflows, along with the market's ascent, pushed SPY's total assets under management to $250 billion. That's the highest asset total ever for the world's largest ETF.
But even as assets for the fund reach new milestones, SPY curiously still has net outflows for the year as a whole, totaling $6.7 billion. Intense competition from lower-cost rivals such as the iShares Core S&P 500 ETF (IVV) have taken a toll on the behemoth.
Net ETF inflows for all ETFs in 2017 now stands at $369 billion, a new annual record.
Tax Reform Hopes Fuel Stocks
Speaking of records, the stock market continued to make new ones on a near-daily basis this week. The S&P 500 leapt as high as 2,574, equaling a return of nearly 17% for the year.
Hopes that a sweeping tax reform bill could be passed in the near future grew after the Republican-led Congress successfully passed a $4 trillion budget blueprint.
"This action keeps us on track to enacting historic tax reform that will mean more jobs, fairer taxes and bigger paychecks for American families," House speaker Paul Ryan said of the bill.
Analysts estimate that tax cuts for corporations could mean a boost in profits of 7-12% next year, which is a big reason stocks have been climbing steadily higher recently.
Meanwhile, in fixed-income markets, the benchmark 10-year Treasury bond yield jumped from 2.28% to 2.38% week-over-week. The Federal Reserve is widely expected to hike interest rates at its December meeting.
In other Fed news, sources indicated that President Trump was leaning toward nominating Fed Governor Jerome Powell as the next chair of the central bank to replace Janet Yellen in February. If he gets the nod, Powell may continue Yellen's policies of gradual rate hikes, while avoiding upsetting markets.
SPY At The Top
Taking a look at flows for individual products, SPY easily took the top spot. on this week's list, with inflows of $4.1 billion. A distant Nos. 2 and 3 on the weekly inflows list were the iShares Core U.S. Aggregate Bond ETF (AGG) and the iShares Core MSCI Emerging Markets ETF (IEMG), with creations of around $600 million each.
On the outflows side, the iShares 3-7 Year Treasury Bond ETF (IEI), the iShares NASDAQ Biotechnology ETF (IBB) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) were a few notable names to fall out of favor during the week.
For a full list of this week's top inflows and outflows, see the tables below:
Top 10 Creations (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
SPY | SPDR S&P 500 ETF Trust | 4,150.64 | 250,605.70 | 1.68% |
AGG | iShares Core U.S. Aggregate Bond ETF | 613.69 | 51,060.61 | 1.22% |
IEMG | iShares Core MSCI Emerging Markets ETF | 572.12 | 40,426.88 | 1.44% |
LQD | iShares iBoxx $ Investment Grade Corporate Bond ETF | 460.72 | 38,811.06 | 1.20% |
IEFA | iShares Core MSCI EAFE ETF | 453.87 | 38,956.68 | 1.18% |
EEM | iShares MSCI Emerging Markets ETF | 418.35 | 37,876.24 | 1.12% |
XLF | Financial Select Sector SPDR Fund | 371.51 | 28,333.35 | 1.33% |
XLI | Industrial Select Sector SPDR Fund | 357.07 | 13,190.03 | 2.78% |
VOO | Vanguard S&P 500 ETF | 341.28 | 76,064.87 | 0.45% |
IVV | iShares Core S&P 500 ETF | 333.70 | 130,783.96 | 0.26% |
Top 10 Redemptions (All ETFs)
Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
QQQ | PowerShares QQQ Trust | -334.28 | 53,432.99 | -0.62% |
IEI | iShares 3-7 Year Treasury Bond ETF | -308.38 | 7,806.16 | -3.80% |
IBB | iShares NASDAQ Biotechnology ETF | -269.85 | 10,298.68 | -2.55% |
HYG | iShares iBoxx $ High Yield Corporate Bond ETF | -246.68 | 20,004.97 | -1.22% |
TLT | iShares 20+ Year Treasury Bond ETF | -188.77 | 8,430.98 | -2.19% |
TIP | iShares TIPS Bond ETF | -136.25 | 23,679.61 | -0.57% |
VXF | Vanguard Extended Market ETF | -108.14 | 5,241.58 | -2.02% |
XOP | SPDR S&P Oil & Gas Exploration & Production ETF | -89.36 | 2,100.36 | -4.08% |
IEF | iShares 7-10 Year Treasury Bond ETF | -85.32 | 7,540.64 | -1.12% |
SLV | iShares Silver Trust | -76.10 | 5,513.79 | -1.36% |
ETF Weekly Flows By Asset Class
Net Flows ($, mm) | AUM ($, mm) | % of AUM | |
U.S. Equity | 9,525.00 | 1,794,381.50 | 0.53% |
International Equity | 3,454.96 | 761,201.80 | 0.45% |
U.S. Fixed Income | 1,886.09 | 523,199.42 | 0.36% |
International Fixed Income | 242.04 | 56,727.92 | 0.43% |
Commodities | -146.35 | 66,015.26 | -0.22% |
Currency | -15.29 | 1,324.59 | -1.15% |
Leveraged | 252.11 | 30,500.73 | 0.83% |
Inverse | -65.32 | 17,094.22 | -0.38% |
Asset Allocation | 32.75 | 8,584.35 | 0.38% |
Alternatives | 78.21 | 4,088.80 | 1.91% |
Total: | 15,244.20 | 3,263,118.59 | 0.47% |
Top 10 Volume Surprises, Funds >$50 mm AUM
Ticker | Name | Average Volume (30 Day) | 1 Week Average Volume | % of Average |
IDLB | PowerShares FTSE International Low Beta Equal Weight Portfolio | 27,164 | 102,110 | 375.91% |
SMLF | iShares Edge MSCI Multifactor USA Small-Cap ETF | 11,303 | 46,368 | 410.22% |
SPLG | SPDR Portfolio Large Cap ETF | 3,718 | 20,340 | 547.11% |
SPTM | SPDR Portfolio Total Stock Market ETF | 5,503 | 36,182 | 657.45% |
PSCD | PowerShares S&P SmallCap Consumer Discretionary Portfolio | 4,830 | 13,453 | 278.55% |
CLTL | PowerShares Treasury Collateral Portfolio | 320 | 2,028 | 634.60% |
SPYV | SPDR Portfolio S&P 500 Value ETF | 5,589 | 27,935 | 499.82% |
SPYG | SPDR Portfolio S&P 500 Growth ETF | 13,860 | 67,474 | 486.82% |
RJI | Elements Rogers International Commodity Index-Total Return ETN | 263,627 | 770,174 | 292.14% |
RING | iShares MSCI Global Gold Miners ETF | 331,311 | 801,972 | 242.06% |
Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.